EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMERICAN VANGUARD POSTS 24TH CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH WITH FIRST QUARTER NET INCOME UP 42% ON 20% SALES INCREASE
Newport Beach, CA – May 5, 2005 – American Vanguard Corporation (AMEX:AVD), today announced financial results for the first quarter ended March 31, 2005.
First Quarter Financial Highlights– versus fiscal 2004 first quarter
• | Net sales rose 20% to $41.2 million. |
• | Operating income increased 38% to $5.4 million. |
• | Net income grew 42% to $3.1 million or $0.16 per diluted share. |
Eric Wintemute, President and CEO of American Vanguard, stated, “We are pleased to start the year with another record period, this now marking our 24th consecutive quarter of comparable period top and bottom-line growth. We saw continued strength throughout our product line during the quarter, with particular contribution from products acquired or licensed in 2003 and 2004, as well as our 2004 generic market entrance into bifenthrin. Importantly, our lean operating structure enabled us to expand profits at more than twice the rate of our sales.”
Mr. Wintemute continued, “Toward the end of the quarter, we introduced a new facet to our growth strategy – our first new active ingredient. We entered into an exclusive multi-year agreement with BASF to develop, register and commercialize Topramezone, a new herbicide for post-emergent use in corn in North America. We have had considerable success selling corn soil insecticides to date, and this agreement will allow us to offer a new key tool to the corn farmer.”
James Barry, Senior Vice President and CFO of American Vanguard, commented, “With regard to our balance sheet, we closed the quarter with $43.0 million in working capital, total debt of $31.5 million (including current installments), and shareholders’ equity of $66.2 million. We believe our financial position serves as a solid foundation to support our future growth.”
Mr. Wintemute concluded, “We continue to feel confident that the Company will achieve double-digit growth in sales and net income in 2005, and are also optimistic about the current market environment for product acquisition and licensing opportunities. We look forward to reporting on the Company’s continued development.”
Conference Call
Eric Wintemute, President and CEO, and James Barry, Senior Vice President and CFO, will conduct a conference call focusing on the financial results at 12:00 noon ET on Thursday, May 5, 2005. Interested parties may participate in the call by dialing 706-679-3155. Please call in 10 minutes before the call is scheduled to begin, and ask for the American Vanguard call. The conference call will also be broadcast live over the Internet via the Investors section of the Company’s web site at www.american-vanguard.com. To listen to the live webcast, go to the web site at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company’s web site.
American Vanguard Corporation News Release | Page 2 | |
May 5, 2005 |
About American Vanguard
American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. The Company’s basic strategy is to acquire brand name, niche product lines from larger companies that divest mature products to focus on newly discovered molecules. During 2004, American Vanguard was recognized as one ofBusinessWeek’sHot Growth Companies (#93),Fortune Small Business’ America’s100 Fastest Growing Small Companies(#26) andForbes’ 200 Best Small Companies (#34). American Vanguard is included on the Russell 2000® and Russell® 3000 Indexes. To learn more about American Vanguard, please reference the Company’s web site at www.american-vanguard.com.
The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.
CONTACT: | -OR- | AVD’S INVESTOR RELATIONS FIRM | ||
American Vanguard Corporation | The Equity Group Inc. | |||
Eric G. Wintemute, President & CEO | www.theequitygroup.com | |||
(949) 260-1200 | Lauren Barbera | |||
lbarbera@equityny.com | ||||
(212) 836-9610 |
American Vanguard Corporation News Release | Page 3 | |
May 5, 2005 |
American Vanguard Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
For the Three Months | ||||||||
2005 | 2004 | |||||||
Net sales | $ | 41,230,000 | $ | 34,219,000 | ||||
Cost of sales | 23,685,000 | 19,029,000 | ||||||
Gross profit | 17,545,000 | 15,190,000 | ||||||
Operating expenses | 12,132,000 | 11,281,000 | ||||||
Operating income | 5,413,000 | 3,909,000 | ||||||
Interest expense | 339,000 | 314,000 | ||||||
Interest income | (2,000 | ) | (1,000 | ) | ||||
Interest capitalized | (63,000 | ) | (15,000 | ) | ||||
Income before income tax | 5,139,000 | 3,611,000 | ||||||
Income tax expense | 2,004,000 | 1,408,000 | ||||||
Net income | 3,135,000 | 2,203,000 | ||||||
Earnings per common share (1) | $ | 0.17 | $ | 0.12 | ||||
Earnings per common share - assuming dilution (1) | $ | 0.16 | $ | 0.12 | ||||
Weighted average shares outstanding (1) | 18,221,510 | 17,925,196 | ||||||
Weighted average shares outstanding - assuming dilution (1) | 19,279,366 | 19,037,716 | ||||||
(1) | Retroactively restated to reflect a 2-for-1 stock split distributed on April 15, 2005 to common stockholders of record as of March 29, 2005. |
American Vanguard Corporation News Release | Page 4 | |
May 5, 2005 |
American Vanguard Corporation and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
March 31, | December 31, | |||||
2005 | 2004 | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 683,000 | $ | 457,000 | ||
Receivables | 45,547,000 | 28,305,000 | ||||
Inventories | 46,033,000 | 43,635,000 | ||||
Other current assets | 1,454,000 | 1,619,000 | ||||
Total current assets | 93,717,000 | 74,016,000 | ||||
Property, plant, equipment, net | 28,987,000 | 26,118,000 | ||||
Other assets | 21,689,000 | 22,212,000 | ||||
Total assets | $ | 144,393,000 | $ | 122,346,000 | ||
Liabilities | ||||||
Current liabilities: | ||||||
Current installments of long-term debt | $ | 5,106,000 | $ | 5,107,000 | ||
Accounts payable | 22,087,000 | 12,984,000 | ||||
Other current liabilities | 23,527,000 | 19,650,000 | ||||
Total current liabilities | 50,720,000 | 37,741,000 | ||||
Long-term debt, excluding current installments | 26,347,000 | 19,474,000 | ||||
Other long-term liabilities | 1,159,000 | 1,159,000 | ||||
Total liabilities | 78,226,000 | 58,374,000 | ||||
Total stockholders’ equity | 66,167,000 | 63,972,000 | ||||
Total liabilities and stockholders’ equity | $ | 144,393,000 | $ | 122,346,000 | ||
American Vanguard Corporation News Release | Page 5 | |
May 5, 2005 |
2005 Summary Results of Operations
(Unaudited)
Three months ended March 31 | |||
Net sales | $ | 41,230,000 | |
Gross profit | 17,545,000 | ||
Operating income | 5,413,000 | ||
Net income | $ | 3,135,000 | |
EPS – basic | $ | 0.17 | |
EPS – diluted | $ | 0.16 | |
Weighted average shares outstanding | 18,221,510 | ||
Weighted average shares outstanding – assuming dilution | 19,279,366 |
2004 Summary Results of Operations
(Unaudited)
Three months ended March 31 | Three months ended June 30 | Three months ended September 30 | Three months ended December 31 | Fiscal 2004 | |||||||||||
Net sales | $ | 34,219,000 | $ | 31,492,000 | $ | 39,624,000 | $ | 45,520,000 | $ | 150,855,000 | |||||
Gross profit | 15,190,000 | 13,748,000 | 18,446,000 | 24,875,000 | 72,259,000 | ||||||||||
Operating income | 3,909,000 | 4,251,000 | 6,889,000 | 9,909,000 | 24,958,000 | ||||||||||
Net income | $ | 2,203,000 | $ | 2,405,000 | 3,988,000 | 5,881,000 | 14,477,000 | ||||||||
EPS – basic (1) | $ | 0.12 | $ | 0.14 | $ | 0.22 | $ | 0.32 | $ | 0.81 | |||||
EPS – diluted (1) | $ | 0.12 | $ | 0.13 | $ | 0.21 | $ | 0.30 | $ | 0.76 | |||||
Weighted average shares outstanding (1) | 17,925,196 | 17,944,534 | 17,960,478 | 18,021,846 | 17,963,396 | ||||||||||
Weighted average shares outstanding – assuming dilution (1) | 19,037,716 | 19,205,384 | 19,158,870 | 19,230,690 | 19,167,450 |
(1) | Retroactively restated to reflect a 2-for-1 stock split distributed on April 15, 2005 to common stockholders of record as of March 29, 2005. |
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